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Upcoming Social Security Changes: What EnerSys Employees Should Know for January 2025

Healthcare Provider Update: Healthcare Provider for EnerSys: EnerSys, a global leader in stored energy solutions, typically utilizes various healthcare providers for its employee benefits. However, the specific healthcare provider used by EnerSys can vary by location and is often tailored to meet the needs of its workforce and regional healthcare systems. For the most accurate and updated information, it's advisable for employees or interested parties to refer to EnerSys' human resources or benefits department. Potential Healthcare Cost Increases in 2026: As healthcare costs rise significantly, the landscape for employers and employees is expected to shift dramatically in 2026. Various insurers are predicting increases in premiums often exceeding 20%, driven by factors such as higher medical costs, potential expiration of federal premium subsidies, and significant rate hikes from the largest insurers. With market conditions suggesting that over 22 million individuals may face out-of-pocket premium hikes exceeding 75%, the financial strain on many families and businesses is imminent, necessitating strategic planning among employers to mitigate these impacts. Click here to learn more

Social Security remains a pivotal topic in modern political discourse, with imminent changes poised to affect millions, including EnerSys employees. As the program contemplates potential reforms, understanding the nuances of these upcoming adjustments is crucial. Post-2025, several significant alterations to Social Security are expected, impacting financial planning and stability.

Anticipating the Cost of Living Adjustment (COLA) for EnerSys Employees

Initially, an annual Cost of Living Adjustment (COLA) is anticipated. The Social Security Administration (SSA) calculates COLA based on the Consumer Price Index (CPI) increases during the third quarter of each year. While the definitive COLA figures for 2025 won't be published until October 2024, current forecasts by the Senior Citizens League suggest a 2.6% increase. This moderate rise, still above the Federal Reserve's long-term inflation target of 2%, could enhance the purchasing power of Social Security benefits, offering EnerSys employees some solace after the higher inflation rates that began in 2021.

Full Retirement Age Changes Impacting EnerSys Employees

Another significant shift is the gradual increase in the full retirement age. Established by a Congressional Act in 1983, the full retirement age is progressively extending to 67. For those born in 1954, the full retirement age was 66. However, this threshold increases by two months each year for individuals born after 1954. By 2025, those born in 1958 will reach their full retirement age at 66 and 8 months, while those born at the start of 1959 will reach 66 and 10 months. EnerSys employees need to be aware that this measure directly impacts the calculation of monthly benefits, whether claimed at full retirement age or deferred until age 70.

Social Security Contribution Adjustments for EnerSys Employees

Additionally, changes to Social Security contributions are on the agenda. Typically, individuals contribute 6.2% of their wages to Social Security, matched by their employer for a total of 12.4%. However, there's a cap on taxable income, adjusted annually based on wage inflation. For 2024, this cap was set at $168,600, with any income above this limit exempt from Social Security taxes. Projections for the coming year, aligned with COLA adjustments, suggest a slight increase in this cap due to lower inflation rates, potentially leading to higher tax burdens for high-income earners at EnerSys.

Strategic Planning for EnerSys Employees Nearing Retirement

While these changes predominantly impact those nearing or already at retirement age, they are also relevant for active EnerSys employees, affecting their future benefits and tax liabilities. Often, many are not fully aware of potential enhancements to their Social Security income. For instance, certain strategies could significantly increase annual retirement income. This opportunity highlights the importance of informed planning and engaging with available resources to effectively maximize Social Security benefits.

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Staying Informed on Social Security Adjustments

As the Social Security landscape evolves each year, staying informed and proactive in analyzing these changes is vital to optimize financial planning. The adjustments slated for 2025 underscore the dynamics of this essential program and the need for meticulous preparation to ensure a stable and comfortable retirement for EnerSys employees.

Income Limits and Working While Receiving Social Security Benefits

In addition to the anticipated adjustments, beneficiaries should be aware of modifications to Social Security's income limits. For those continuing to work while receiving benefits before reaching full retirement age, the earnings test limit is expected to increase in 2025. This adjustment allows EnerSys employees to earn more through their work without losing Social Security benefits, offering greater flexibility and financial comfort during the transition to full retirement. According to the 2024 Social Security Administration Fact Sheet, this adaptation aims to accommodate economic changes and support retirees' engagement in the workforce.

Observing the forthcoming Social Security changes for 2025 is akin to preparing for a seasonal transition in gardening. Just as a gardener anticipates the first frost and modifies their planting schedule, EnerSys employees nearing retirement need to adjust their financial plans. The forecasted cost of living adjustment (COLA) resembles the slow release of essential nutrients needed for plants' survival amid temperature fluctuations, thus providing necessary aid to retirees' budgets. Simultaneously, the gradual increase in full retirement age reflects the practice of planting perennials, which require time to reach their full bloom. Lastly, the adjustment of the tax ceiling is similar to pruning—ensuring one does not remove too much from their earned income, thus promoting better financial health upon retirement. Just as gardeners prepare their tools and knowledge for the upcoming season, it's crucial for EnerSys employees gearing up for retirement to equip themselves with information to optimize their benefits.

What type of retirement savings plan does EnerSys offer to its employees?

EnerSys offers a 401(k) retirement savings plan to its employees.

Does EnerSys provide a company match for contributions made to the 401(k) plan?

Yes, EnerSys provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

How can EnerSys employees enroll in the 401(k) plan?

EnerSys employees can enroll in the 401(k) plan by completing the enrollment process through the company's benefits portal.

What is the eligibility requirement for EnerSys employees to participate in the 401(k) plan?

EnerSys employees are eligible to participate in the 401(k) plan after completing a specified period of service, typically outlined in the employee handbook.

Can EnerSys employees change their contribution amounts to the 401(k) plan?

Yes, EnerSys employees can change their contribution amounts to the 401(k) plan at any time during the year.

What investment options are available in the EnerSys 401(k) plan?

The EnerSys 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

Does EnerSys allow for loans against the 401(k) plan?

Yes, EnerSys allows employees to take loans against their 401(k) plan balances, subject to specific terms and conditions.

What happens to the 401(k) plan if an EnerSys employee leaves the company?

If an EnerSys employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the EnerSys plan if allowed.

Are there any fees associated with the EnerSys 401(k) plan?

Yes, there may be administrative and investment fees associated with the EnerSys 401(k) plan, which are disclosed in the plan documents.

How often can EnerSys employees review their 401(k) account statements?

EnerSys employees can review their 401(k) account statements quarterly, and they may also have access to their accounts online for real-time updates.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

For EnerSys, the company provides a 401(k) plan for its employees with a company match. According to reports from employee reviews, EnerSys offers a matching contribution up to 6%. Specifically, the first 4% is matched at 100%, while the next 2% is matched at 50% (Day Pitney). This makes it possible for employees to benefit from a total employer contribution of up to 6% of their salary, depending on their personal contribution levels. The EnerSys 401(k) plan is available to all full-time employees, and as per the company's policies, the matching starts after a certain period of employment, typically 90 days (Day Pitney). EnerSys also offers a Defined Benefit Pension Plan, though details on the specific name of the plan and the precise formula used were not immediately accessible. However, it is typically calculated based on factors such as years of service and final average pay. Employees are vested after completing a specified period of service, which is typically around five years

Restructuring and Layoffs: In 2023, EnerSys announced a significant restructuring plan aimed at optimizing its global operations. This restructuring led to layoffs affecting several positions across its manufacturing and administrative sectors. The move was part of a broader strategy to streamline operations and reduce costs amid a challenging economic environment. It is crucial to monitor such developments due to the impact of restructuring on employee security and the potential implications for the company’s operational efficiency. Given the current economic climate and investment trends, understanding these changes is essential for stakeholders to navigate the potential risks and opportunities effectively.

EnerSys Stock Options (SO): EnerSys offers stock options (SO) to selected employees based on their roles and performance. The options typically vest over a period of time, ensuring that employees stay with EnerSys for an extended period. EnerSys Restricted Stock Units (RSU): EnerSys grants Restricted Stock Units (RSU) to senior executives and key employees. These RSUs are generally subject to performance and time-based vesting conditions.

Health Plan Options: EnerSys offers its employees competitive health insurance plans, including options through Blue Cross Blue Shield (BCBS). Employees can choose between a High Deductible Plan (HDP) and a Preferred Provider Organization (PPO) plan (Enersys) (Enersys Investor). These options are designed to cater to different needs, with the HDP being suitable for employees who prefer lower premiums and higher deductibles, while the PPO offers more flexibility in choosing healthcare providers. Health Savings Account (HSA): Employees enrolled in the HDP have access to a Health Savings Account (HSA), allowing them to set aside pre-tax dollars to cover medical expenses. This is a key feature that supports employees in managing out-of-pocket costs (Enersys). Wellness and Preventive Care: EnerSys promotes preventive care through its health plans by offering annual physicals, screenings, and immunizations at no additional cost to employees (Enersys). Preventive care is a major focus, aiming to reduce long-term healthcare costs and improve employee well-being. Employee Assistance Program (EAP): EnerSys provides an Employee Assistance Program (EAP) for mental health support. This program offers confidential counseling and resources for employees dealing with personal or professional challenges. The EAP is part of EnerSys' broader commitment to employee wellness (Enersys Investor). Recent Employee Healthcare News: In response to rising healthcare costs, EnerSys has maintained a commitment to keeping employee contributions low while expanding access to essential services. They have continued enhancing their healthcare plans by offering comprehensive telehealth services, reflecting industry trends aimed at reducing in-person visits and supporting remote healthcare needs

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For more information you can reach the plan administrator for EnerSys at 2366 Bernville Rd Reading, PA 19605; or by calling them at (610) 208-1991.

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